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While the economy might seem a little off topic for this blog, it certainly has relevence to making money online. The economy occurrs in various cycles, and it’s a lot eaiser to make money during certain cycles.  When you hear about a bunch of layoffs, or you can anticipate a series of layoffs and downsizing before they happen, internet businesses will thrive.  Not right away of course, but people that have had jobs for years start to realize that job security is the “old paradigm”.  Whether they were layed off, or their friends were layed off, or family, neighbors, etc, they start to come to this “awakening”. What do many of them do?  They seek jobs online.

A common theme in the internet marketing community is “dont sell the gold, sell the shovels”.  This means that if there’s a hot trend, don’t compete with everyone trying to get the gold, just sell the shovles and get rich anyways.  However, being prepared for the “next gold rush” has everything to do with the economy.  If you can get a little business going offering opportunities o make money online, now is the best time.  But for many it will take awhile, and they might be a little too late to be super competative with the rest of the field.  However, as people start to make money, and eventually the rates get low, and the prices get low enough, people start buying houses.  soon a rush of house buying takes prices up, and some people start to realize what a great opportunity it is to make money with real estate.  So they start looking to buy houses.  A housing boom is good for the economy, then people start building, and companies start growing.  After this happens, more people consume, and oil goes up.  At this point, stocks and the overall market starts to go up.  Eventually people overbuild, buy too much on credit, and oil gets expensive.  There might be different parts of the economy booming between there.  As people overspend and credit catches up to them, eventually you have the fed trying to combat the lack of ability to spend by the consumer, and you have some people get in trouble financially.  The businesses do as well, and then there’s a credit crunch.  From there, businesses cut jobs, and the cycle repeats.

During these phases… Aside from investing your extra cash in silver, gold and oil… whichever is most undervalued during inflationary cycles, and investing in cash producing assets during deflation… You’re also going to want to market towards certain areas based on the cycles.

Right now, MLM businesses, and businesses that teach people how to make money online will generally be pretty successful.  How to save money will be pretty successful.  In the short term future, how to be a real estate broker, how to buy a house, how to fix a house, and how to garden and landscape, and those types of things will be valuable, as many renters will eventually look to buy houses,fix them up, live in them ,etc.  Shortly after people will want to learn how to fix and flip houses, how to invest in real estate, and maybe how to grow their own businesses with more of a focus on “business” then “quick cash” since at this point, rather than looking to bail themselves out otf a jam, they’re looking to build for long term.  From there, it’s a lot more wide open, and dependant upon what sort of new advancements, and what people are doing.  This time you want to learn what the technological trend is, or any other trends.  “How to GROW your business is also a pretty good topic. After that, you should focus on trading, and investing.  When the economy is good people have money to spend on stuff, and they also want to buy physicial goods so you can look for those, but many of them want to really earn that cash and multiply it, and the stock market is usually a pretty common place that they look. Now when all of a sudden thingss get too hot and the market starts to cool down, “how to eliminate debt” and things like that are good for quite a long period of time.  “how to save your business, and “how to make money in a down market through stocks” and that sort of thing. Even on the way down people are still looking for that dream way to make tons of money overnight despite their debt as well, and from then on the cycle starts over.

If you want to take the time to learn about the economic cycle, you might consider reading one of Jim Cramer’s books, and look at his chart on the back.  One other thing to notice is, you have to get ahead of things and anticipate it, BEFORE it gets hot.  The reason is, because you want to establish yourself as aan “expert” in the field BEFORE everyone starts looking for advice, so when they finally do, your competitors that know to “sell shovels” aren’t going to have the supplies to sell as many shovels as you do.

Not only do you personally have to prepare to allocate your funds, to save money, and to grow your wealth so you can put that money into your business, but you have to understand what other people will be doing, before they do it… The economy is actually pretty predictable over the long term, and you don’t need a chrystal ball to predict the future, you just need to know the overall trend that has always occured for the economy.

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How much would you pay to be willing to pay in order to retire in 2.5 years or less, and not only have more money comming in, than going out, but have $5000 coming in every month?  Obviously it’d be worth every last penny you had, and you could even go into debt, as long as you could safely pay it off, just so you could afford this opportunity.

Now the situation would change if it wasn’t guaranteed, but still gave you a very high chance of coming close, or if it might take longer, but you’d still be willing to pay $1000, wouldn’t you?

No, this is not some guide I want you to buy  for $1000 that teaches you how, in fact, it’s much simlper than that.  This method can be used by anyone.

How’s it work?

Well lets say you have $1200 plus you have your emergency cash on the side, and you understand this is $1200 that you can risk.  I know I said $1000, and it’s pretty much true, but if an extra cost comes up, you’re going to want to be able to afford it without having to dig into the emergency cash. Your emergency cash should be based on current expenses, and although you’re increasing your income, you’re also increasing expenses.  You use that $1000 on buying an already established web business. 

You can do this simply by going to sitepoint.com and clicking on marketplace.  Sitepoint is not the only place.  There’s digital point forums, and there’s a few others. I prefer Sitpoint, but that’s just me.  So you check the “established websites”, and you notice that there’s one website availble for $1000, and it gets $200 of cashflow a month.  If you plan on running this website yourself, I reccomend, actually being interested in the topic and liking it, but if you are willing to outsource everything, you don’t have to like it. If you just know enough to know whether or not someone is making quality informative useful points on it that should be enough.  You will simply be going to elance.com or rentacoder, or whatever freelancing service you prefer.

Now we’re going to assume you need to pay a few bucks to keep the website running.  Lets say from that $200 cashflow that you’ll be getting, you’ll spend $50 of it paying people to keep your website going for you.  That leaves you with $150 bucks.  You also have to pay for $10 in hosting to host all the accounts before you need to upgrade to a better hosting account.  You might get hosting for free when you buy the website, but maybe not.   Now it wouldn’t be unreasonable to assume that if you continue to have someone add content to your site, and you pay for traffic, or build the traffic streams in your free time, or have someone else do it, that the revenue would actually INCREASE.

There might be a few times where it doesn’t go right and the sites revenue falls, but for the most part, you can at the very least make $150 per site.

If you would just let the income come in the first month, and then use that to pay to have someone add content and things like that to your site so you would ONLY invest the initial $1000 into this (plus $10 per hosting for one month),  and only use the cashflwo from here on out to buy, you would have over $5000 per MONTH from these websites coming in every single month at the end of 28 months.  This is calculated based on fractions of months, but in many cases the checks won’t come in until the end of the month… However, you would be able to buy 2 websites in one month at some point, or you could buy websites for OVER $1000 in some months, so it really wouldn’t be too far off.  So you have $5000 a month with 2 month s to spare until 2 and a half years.

 It might not take money to make money.  You may be able to create your own WSO on your own for free.  But it certainly will make you a lot more, if you focus on reinvesting your traffifc to grow it, as well as an reinvest your money to increase the ability to grow.

Here’s what your monthly earnings will look like

Month 1 190 (paid for hosting)

Month 2 140(paid for someone to help run it for you)

Month 3 140

Month4 140

month 5 140

month 6 140

month 7 140 (now use money to buy 2nd site)

Month 8 290 (after paying to have site maintained

Month 9 290

Month 10 290

Month 11 290 (buy new site)

Month 12 440

Month 13 440 (buy new site)

Month 14 590

Month 15 590 (buy new site)

Month 16 740

Month 17 740 (Buy new site)

Month 18 890 (Buy New site)

Month 19 1040( Buy New Site)

Month 20 1190( Buy New Site)

Month 21 1340( Buy New Site)

Month 22 1490( Buy 2 New Sites)

Month 23 1790 (Buy New Site)

Month 24 1940 (Buy 2 New Sites)

Month 25 2240 (Buy 2 New Sites)

Month 26 2540 (Buy 3 New Sites)

Month 27 3440 (Buy 3 New Sites)

Month 28 3890 (Buy 4 New Sites)

Month 29 4490 (Buy 4 more sites)

Month 30 5090 (Buy 5 More sites)

END of 2.5 years 

Month 31 5840

etc

Now what do you think would happen if you continued this for 4 years?  In 4 years, if you can manage to keep this up, you will crack $100,000 a month.  Of course, it will get harder and harder to find $1000 websites, o you’ll be forced to take a look at the more premium websites with a slightly lower return, and/or get a team of people to buy the websites for you, which will cost you more money.  You also will not be able to use any of that money you gain if you want your website to really grow as fast as possible.  The question becomes, how much do I want to make before I start spending.  I also think you should make sure to have more and more available cash aside because if something goes wrong, you might have to deal with missing out on ALL of the incomes sources.  Make sure to back up all of your files as well, a server crash can kill your business.  You would need to spend more time on this, and you would need to continue to buy more and more hosting account as you get more sites, or at least pay $30 a month for one of those superlarge reseller hosting accounts.

As you can see, it’s really not that difficult, and  being able to actually own a cash producing asset that you can reinvest, will lead to a much more valuable return than any stock.  Is it likely that you’ll see a 500% return in a stock in 2.5 years? Probably not, and if you do, once you sell it, the money stops coming in.   Tour return is limited. Not only that, but if there’s inflation, you will generally take in MORE cash to adjust for it.  While saving has your cash going down, and investment cashes in for dollars that aren’t worth as much as they were before you started, cash producing assets produce more cash. In addition, when cash assets produce more cash, they’re worth more money to the buyer.  So if you can buy something for $1000 that brings in $200 a month, and you can increase the monthly income to $400, what do you think someone would be willing to pay for it?  Twice as much cashflow, is at least twice the amount of value.

Now if you’re smart, you’ll track your income, and you’ll learn which sites have more potential.  The lowest profit sites you can work on to increase the income for a few months, then you can sell it. Then you can use the cash to either replace it with another one, or to increase the advertising and value of another website.

Don’t have $1000?  You can easily start with a $250 website that rakes in $50 a month.   Of course, you won’t make much money on it, especially if you have to use all $50 to automate, but you can at least have the price of the website gain in value so you could sell it later if you want, and you have the potential to make the revenue go up as well.  Websites are like fine wines, they become worth MORE as they age.  People like the domain names better, and there becomes more demand for certain domain names.  They usually naturally gain backlinks as well, making them more valuable.

I’m not saying jump in right away,  I’m saying understand it’s a possibility, use it to dream big dreams, and motivate yourself to learn what you need to.  When you are completely ready, and have everything ready, and have the finances the right way, go ahead and give it a shot, and let me know how it goes… I love success stories

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In the business world, referrals are often what keeps struggling businesses going when the economy suffers.  The major referrals will either keep them going strong, or at least allow them to survive until the economy turns around. 

In The world of the internet, It works the same way.  The only difference is, referrals come in different kinds of ways, and are harder to come by.

You should absolutely NEVER sacrifice the possibility of a referral in order to save time or gain money.  Cutting shortcuts like these can destroy your business, and absolutely limit it before it ever gets a chance to get going.  Of course, if you are persistant, and willing to keep building your site, even when challenged, and put down, or told you can’t do it, you will eventually succeed, but why choose a bumpy, windy path everyone else is following when there’s a path that’s already been cleared away for you?

When other websites were focused on selling their services, and profiting youtube was focused on building content.

When other people were trying to create overnight success, amazon, was building it’s foundation.

When people were trying to make the quickbuck on ebay, or the next hottest thing, the founder of facebook was creating his own network just to keep in touch with his friends.

When people were becomming overnight successes in the stock market before the dot com bust, Warren Buffett was sticking to his principals of finding  undervalued successful businesses, and slowly, but surely, growing his wealth.

Myspace did no advertising, but they had a commitment to excellence, and remained focused on generating referrals.

Legendary consultant Jay Abraham focuses on referrals, and being so focused that you do every possible thing you can to get the word out.

Steve Pavlina didn’t listen when people said “choose a small focused niche”, and was too busy focusing on adding as much value to the reader that he could.

When you focus on growth and referals in your own unique way, you will continue to experience rapid growth, and your potential for earning will become that much greater.   Once you can no longer grow your potential at the same rate, now your goal becomes either finding new ways to grow your potential, or living up to the massive potential that your site has.

The important thing is not always noticable or something that you can track.  What happens AFTER someone comes on your site? Do they tell their friends? Do they run away and never come back? Do they come back every day? Do they go and search for you, do they add you on a social networking site?

I think it was Brian Tracy that said when you start to ask yourself the right questions, you will start to get the right answers, you want better results, ask better questions

If you make a committment towards growing your site and increasing it’s value, you will start to see some serious results.

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Building backlinks is not only a great way to get traffic, but the more backlinks you have, the more likely you are to rank higher in the search engines as well .

Recently I made a post at the warrior forum listing over 30 free linkbuilding and traffic building strategies.  In the future, I will be creating posts that go into more detail about each method.

For now, I’m sure you will at least be able to generate some “starting points” and some ideas to get started.

Here’s the list:

1 social networks

2 social bookmark (social media included)

3 Video Submission

4 classified ads

5 article directories

6 forums

7 related blogs

8 related sites

9 press releases

10 ebook reviews

11 rss feeds

12 podcast directories

13 search engines (submitting your url to them)

14 question and answer sites like yahoo answers

15 top alexa 100 sites (for example, use various ebay feature to get your website url on it)

16 link directories

17 FFA

18 traffic exchanges

19 safelists

20 ebook directories

21 free ezine ads

22 downline builders

23 ad boards

24 mlm ads

25 link exchanges

26 various branches associated with or owned by major search engines (google news, yahoo answers, MSN groups, yahoo 360 blog, blogger, etc)

27 your free blogs/hub pages

28 profiles within social bookmarking sites,, article directories, etc

29 site review websites

30 blog directories

31 blog networks (blogrush, mybloglog)

32 Submitting to Massive giveaways

33 joint venture deals

Bonus: Trackbacks and trackback exchanges

Did I miss something? Do you have something to add? Feel free to join in the conversation at the warrior forum, and add more!

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I’ve only just started this blog about a week and a half ago, but since I’ve already made a few posts, I thought I would introduce myself a little more. I got into affiliate marketing about around the same time I got into Personal Development. It was actually during a “low” point for me. I had just entered in college, and many of my dreams and aspirations either faded away as I didn’t really have the passion anymore, or I felt the opportunity for them had already gone by. I had no idea what I wanted to do with my life, and the thought of working for someone else the rest of my life until retirement, just wasn’t my cup of tea. I actually had some brief thoughts of suicide that I would shake off, they weren’t even really my own conscious thoughts as much as they were random flashes, random visions of my attempting it. So obviously with all this in mind, my grades really weren’t a priority for me. But I had no idea what I wanted, so without any real goals, I would act in a pretty random manner doing whatever I felt like with no reason behind it. Instead of doing homework, I would play poker on my computer at first. Well sometime around the same time that I realized that I needed to make some serious changes in the way I think, act, and behave, I also realized that I didn’t have to accept working for someone else, and I got bored of poker, and although I went from zero to a thousand, there were some serious downswings, and I just couldn’t handle it, and it was actually worse than a job in a lot of ways because if you stopped the income stopped, but if you continued, sometimes you would lose money out of your pocket, and working harder didn’t always pay off. So I discovered poker’s affiliate programs, and had a bunch of small changes over a period of time that ended up dramatically changing the way I looked at things, which lead to me looking for passive income, and towards Personal Development.

One story that I really resonated with, around that time, was Steve Pavlina’s story about how he went from someone that had been caught and sent to jail for stealing, to realizing that he needed to turn his life around. In one of his podcasts, he stated that he decided although he might not have been strong enough at that moment, he at least had the realization that if he worked at it, he could some day have the ability to turn his life around.

Not only did I feel that I wasn’t living the life I wanted, I too wanted to change my life around, feeling that I wasn’t good enough, but realizing that I could. Not only did I realize this in my financial life, but in my personal life as well. I became almost desperate for something better, I even looked towards hypnosis, subliminal messages, and anything I could find.

So I would download everything I could on personal development. Brian Tracy, Dr. Wayne Dyer, Tony Robbins, Jay Abraham and Richard Bandler to name a few. I eventually got an ipod that I would wear every day for hours and hours, I would literally eat and sleep with my ipod on, listening to anything related to self development.

Like Steve Pavlina, I was able to turn something very negative, into something very positive, through a strong desire to change myself for the better.

I don’t know if I’m even on his level as a blogger, or as far as personal development oes, but I don’t need to compare myself with others either.

Anyways, I’m sure although many of you enjoy reading about this, there is a connection to affiliate marketing.

Because, Steve Pavlina, is a computer programmer, and has one of the best blogs on the internet. That’s not just my personal opinion, that’s based on the fact that according to a few sources, his blog is in the top 10 for annual dollars earned.

In other words, he knows how to make a buck or two, so if you want to not only make money online, but build a business, when he talks, you should listen.

In his recent post Personal Branding he introduces Personal branding, and notes that every single time you interact with someone in some way, you’re branding yourself whether you realize it or not. He then talks about asking for feedback and using it to your advantage.

[quote]Once you’ve gotten yourself assigned a few adjectives in someone else’s mind, it can be very difficult to change that. So just make the best of the adjectives you’ve been assigned. When you learn how others see you, you can “play back at them” by acknowledging their expectations. Instead of trying to fight your own branding, roll with it and turn it into a strength. This actually helps you reconnect your external brand with your internal one. [/quote]

Although it’s good to “role with the punches’ rather then fight what people think, or try to manipulate their thoughts, you don’t want to have to deal with a bunch of negative expectations. With this in mind, it’s important to realize that once people start perceiving you a certain way, it’s going to be very difficult to change it. Which is yet another of many reasons why you should start with the end in mind. Before you even start an online business, you should have a clear vision of exactly how you want everything to go. Start with your exit plan first.

Once you have that clear vision, you need to determine exactly what you need to do to get there. The idea is to become the person that you want others to perceive you as, and then from there, start your business.

So many other people make it up as they go, but that is not a recipe for success, nor is doing as others do. You may occasionally get lucky and find success by being spontaneous, and taking chances is certainly better than not taking one, but sometimes just a little planning can make all the difference in the world.

When you start with the end in mind, you won’t find a reason to do anything other than to keep working smart and hard. As long as you still have that clear vision, and you know exactly WHY you want success, you will always have a source of motivation.

You can completely change your behavior without being hypocritical, different, or approval seeking of others. We all have an “ideal” self, someone who we think we are capable of being. When we receive feedback that differs from the person we want to be, then we know. But you don’t want to be doing this after the public already has one perception of you. If that occurs, the best solution is a change of environment. Online it’s easy to do, simply create a new blog with a new look, and a new target audience. If you want to, you can even get a new name. However if the public has a negative viewpoint or perception of you, but you still feel that the actions you’ve taken are consistant with the person you want to be, or if you feel they are attacking something about yourself that you truely are, then the only problem is, they haven’t been able to see it from a positive perspective. This is where turning a perceived weakness into a strength, without changing your character comes into play.

You see, my whole life changed for the better, when I realized I didn’t like where I thought things were going. I truly believe that those random suicidal thoughts were the beliefs and ideas I had about my “end”, and a very possible end had I continued to think, act, talk, and feel, the same way, and do the same things I had been doing.

But it is not only a necessary strategy to have in your personal life in order to succeed consistently, but it is also a necessary strategy to have in your business life, in order to succeed in business.

Whether it’s for Personal Branding and for your overall business plan, or for your goal setting, and overall life plans, it is absolutely essential that you develop and maintain that clear vision, and always start with a clear vision of your ideal “end” in mind.

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